Financial Performance - In 2023, the company's revenue was HKD 17,134.0 million, an increase from HKD 16,031.9 million in 2022[2] - The gross profit for 2023 was HKD 934.1 million, down from HKD 1,372.3 million in 2022, resulting in a gross margin of 5.5%, a decrease of 3.1 percentage points from 8.6% in 2022[2] - The profit attributable to the company's owners was HKD 64.1 million in 2023, compared to HKD 336.1 million in 2022[2] - The basic earnings per share for 2023 was HKD 0.0187, down from HKD 0.0980 in 2022[6] - The operating profit for the year was HKD 17,342,928, with a pre-tax profit of HKD 109,930 after accounting for financial expenses of HKD 224,719[42] - The group reported a net profit of HKD 72,386 for the year, after tax expenses of HKD 37,544[42] - The operating profit decreased by 75.9% to HKD 123.7 million in 2023, down from HKD 514.2 million in 2022, primarily due to reduced gross profit contributions from electrolytic manganese products[115] - The EBITDA for 2023 was HKD 780.2 million, a decrease of 41.0% from HKD 1,323.0 million in 2022[115] - The group’s profit attributable to owners was HKD 64.1 million in 2023, down from HKD 336.1 million in 2022, with earnings per share decreasing to HKD 0.0187 from HKD 0.0980[161][162] Revenue Breakdown - The total revenue for the year ending December 31, 2023, reached HKD 17,133,960, with external sales from the manganese mining segment in China amounting to HKD 131,203 and from Gabon at HKD 1,182,462[42] - Total external customer sales reached HKD 16,031,885,000, with significant contributions from electrolytic manganese and alloy materials production at HKD 3,377,047,000 and battery materials production at HKD 1,986,662,000[43] - Revenue from mainland China reached HKD 16,581,604, an increase of 10.6% from HKD 14,989,718 in the previous year[69] - Total customer contract revenue for the year ended December 31, 2023, was HKD 17,133,960, up from HKD 16,031,885 in 2022, representing a growth of 6.9%[96] - Sales of manganese mining products amounted to HKD 1,313,665, while battery materials production generated HKD 2,754,029 in revenue[96] - The total revenue from manganese ore mining increased by 4.5% to HKD 1,313.7 million in 2023, up from HKD 1,257.2 million in 2022[145] - The total revenue from trading business rose by 20.6% to HKD 11,348.0 million in 2023, compared to HKD 9,411.0 million in 2022[145] - The revenue from electrolytic manganese and alloy materials production was HKD 2,754.0 million in 2023, representing an 18.4% increase[145] Expenses and Liabilities - The total current liabilities amounted to HKD 7,231.7 million, compared to HKD 7,073.7 million in 2022[8] - The total non-current liabilities decreased to HKD 1,305.9 million in 2023 from HKD 1,544.6 million in 2022[25] - The total financial expenses for 2023 were HKD 243.2 million, slightly up from HKD 221.3 million in 2022[100] - Administrative expenses increased by 3.3% to HKD 644.8 million in 2023, up from HKD 623.9 million in 2022, mainly due to increased R&D spending on battery materials and alloys[156] - The group’s net current liabilities increased to 891.3 million HKD, up from 746.3 million HKD in 2022, due to more long-term loans maturing within one year[197] Asset Management - As of December 31, 2023, the net debt ratio increased to 121.9%, up from the previous year's figure[2] - The total assets less current liabilities were HKD 4,134.3 million, a decrease from HKD 4,376.9 million in 2022[24] - The total assets of the group amounted to HKD 11,366,020, while total liabilities were HKD 8,537,658, resulting in a net asset position[42] - The total assets amounted to HKD 11,450,624,000, while total liabilities were HKD 8,618,338,000, resulting in a net asset position[43] - Cash and bank balances as of December 31, 2023, were HKD 1,291.2 million, down from HKD 1,606.3 million in 2022[166] Market and Operational Insights - The company continues to expand its operations in the manganese mining and battery materials production sectors, focusing on enhancing production capabilities and market reach[38] - The group is exploring new strategies for market expansion and product development, particularly in battery materials and manganese production[88] - The company plans to continue expanding its market presence and investing in new technologies to enhance production capabilities[43] - The group’s largest customer accounted for less than 10% of total revenue, indicating a diversified customer base[71] Impairments and Losses - The company recognized impairment losses totaling HKD 132,632,000 during the year, impacting overall profitability[43] - The company experienced a net loss from financial assets of HKD 8.9 million in 2023, compared to a minor loss of HKD 164, indicating a substantial increase in financial asset impairments[112] - Financial asset impairment losses in 2023 were HKD 8.9 million, compared to HKD 0.2 million in 2022, primarily from long-aged customers in the battery materials segment[158] Dividends and Shareholder Returns - The company did not recommend any dividend payment for the year ended December 31, 2023[6] - The board did not recommend any dividend payment for the year ending December 31, 2023, consistent with the previous year[189]

Financial Performance - For the six months ended June 30, 2023, total revenue was HKD 7,732,538, a decrease of 14.2% compared to HKD 9,008,594 for the same period in 2022[19] - The operating profit for the period was HKD 724,208, with a notable increase from the previous year's HKD 600,000, reflecting a growth of around 20.7%[44] - The net profit for the period was HKD 397,656, compared to HKD 383,199 in the same period last year, indicating a year-on-year increase of approximately 3.8%[52] - The gross profit was HKD 655.0 million, a decrease of 42.3% compared to HKD 1,134.5 million in the first half of 2022, with a gross margin of 8.5%, down 4.1 percentage points from 12.6% in the previous year[125] - The profit attributable to the owners of the company was HKD 134.9 million, a decrease of 64.8% from HKD 383.2 million in the first half of 2022[157] Cash Flow and Liquidity - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 517,739, compared to HKD 389,866 for the same period in 2022, representing a 32.8% increase[11] - The company’s cash and cash equivalents decreased by HKD 168,283, resulting in a closing balance of HKD 950,014 as of June 30, 2023, down from HKD 1,324,256 at the end of 2022[11] - The cash flow from financing activities showed a net outflow of HKD 414,574 for the six months ended June 30, 2023, compared to a net inflow of HKD 377,606 in the same period of 2022[11] - As of June 30, 2023, the group's cash and bank balances (including pledged deposits) amounted to HKD 1,705.8 million, an increase from HKD 1,606.3 million as of December 31, 2022[199] - The group's net borrowings, after deducting cash and bank balances, were HKD 2,610.8 million, down from HKD 2,854.1 million as of December 31, 2022[199] Taxation - The company reported a total tax expense of HKD 43,821 for the six months ended June 30, 2023, down from HKD 109,507 for the same period in 2022, indicating a significant reduction of 60%[25] - The actual tax rate for the first half of 2023 was 24.7%, up from 21.6% in the first half of 2022[174] - The company is benefiting from a preferential corporate income tax rate of 15% due to its operations in Guangxi, which will expire in 2030[26] Revenue Breakdown - The production segment for electrolytic manganese and alloy materials generated revenue of HKD 1,615,881, a decrease of 28.5% from HKD 2,263,223 in the previous year[19] - The total revenue from manganese ore mining in the first half of 2023 was HKD 581.9 million, a decrease of 9.0% compared to HKD 639.6 million in the first half of 2022[129] - The total revenue from battery materials production was HKD 926.7 million in the first half of 2023, a decrease of 12.2% compared to HKD 1,054.9 million in the first half of 2022[129] - The total revenue from trading business was HKD 4,608.0 million in the first half of 2023, an 8.8% decrease from HKD 5,050.9 million in the first half of 2022[129] Environmental Impact - The company has maintained a commitment to environmental protection, with no significant penalties or prosecutions for violations of environmental regulations during the reporting period[57] - The company achieved a reduction in nitrogen oxides (NOx) emissions to 17 tons in the first half of 2023, down from 21 tons in 2021[79] - The total greenhouse gas emissions for the first half of 2023 amounted to 78,478 tons, with scope 1 emissions at 72,681 tons and scope 2 emissions at 5,797 tons[79] - The company reported a significant increase in slag emissions to 1,191,361 tons in the first half of 2023, compared to 819,144 tons in the same period of 2022[81] - Tailings emissions for the first half of 2023 were recorded at 460,065 tons, a decrease from 532,036 tons in the same period of 2022[82] Operational Efficiency - The company has implemented measures to optimize production layout and improve mining methods, which are expected to reduce operational costs significantly[58] - The company is focusing on enhancing safety measures and environmental risk management in its operations, particularly in the electrolytic manganese production process[97] - The company aims to improve the recovery rate of washing water in the electrolytic manganese production process to reduce energy consumption[98] Management and Governance - The total remuneration paid to key management personnel for the first half of 2023 was HKD 22,000, significantly higher than HKD 4,683 in the same period of 2022[117] - The board does not recommend the payment of any interim dividend for the six months ended June 30, 2023[198] Safety and Compliance - The company reported zero fatal accidents and zero work-related injury days lost across all regions for the first half of 2023, maintaining a strong safety record[102] - The company is committed to complying with all safety and labor standards in Hong Kong, mainland China, and Gabon, with no significant violations reported for the first half of 2023[104]

Manganese Ore Mining Segment Performance - Manganese ore mining segment turned a profit of HKD 73.4 million in 2022, compared to a loss of HKD 180.6 million in 2021, primarily due to the early termination of subcontracting services at the Bembélé manganese mine in Gabon, which incurred settlement expenses of HKD 166.0 million in 2021[31] - Manganese ore mining revenue increased to HKD 1,257.2 million in 2022, accounting for 74.2% of total revenue, up from HKD 721.7 million in 2021[29] - Manganese mining segment revenue increased by 74.2% to 1,257.2 million HKD in 2022 from 721.7 million HKD in 2021 due to expanded mining operations at the Bembélé manganese mine[176] Electrolytic Manganese Metal Products Performance - The company's electrolytic manganese metal products saw an 8.1% decrease in average selling price to HKD 20,322 per ton in 2022, down from HKD 22,121 per ton in 2021[26] - Gross profit margin for electrolytic manganese metal products dropped by 28.2 percentage points to 16.0% in 2022, compared to 44.2% in 2021[26] - Gross profit contribution from electrolytic manganese metal products decreased by 71.5% to HKD 385.8 million in 2022, down from HKD 1,355.7 million in 2021[26] - Electrolytic manganese product sales volume decreased by 14.6% to 118,500 tons in 2022 (2021: 138,682 tons), with an average selling price decrease of 8.1% to HKD 20,322 per ton (2021: HKD 22,121 per ton)[52] Trade Business Performance - Trade business revenue grew to HKD 9,411.0 million in 2022, representing 58.8% of total revenue, up from HKD 5,924.6 million in 2021[29] - The total sales cost increased by 39.7% to HKD 14,659.6 million in 2022 (2021: HKD 10,491.8 million), in line with the increase in trade business revenue and sales costs[36] Battery Materials Production Performance - Battery materials production revenue increased to HKD 1,986.7 million in 2022, representing 18.7% of total revenue, up from HKD 1,673.9 million in 2021[29] - The battery materials production division's revenue increased by 18.7% to HKD 1,986.7 million in 2022 (2021: HKD 1,673.9 million), and gross profit increased by 55.7% to HKD 692.5 million (2021: HKD 444.7 million)[53] - The average selling price of lithium manganate increased by 130.3% to HKD 99,597 per ton in 2022 (2021: HKD 43,236 per ton), in line with the surge in lithium carbonate prices[35] Financial Performance Overview - Total revenue increased by 24.9% to HKD 16,031.9 million in 2022 (2021: HKD 12,830.8 million), while gross profit decreased by 41.3% to HKD 1,372.3 million (2021: HKD 2,338.9 million), with a gross margin of 8.6% (2021: 18.2%)[46] - The company's operating profit decreased by 59.0% to HKD 514.2 million in 2022, compared to HKD 1,254.1 million in 2021, mainly due to reduced gross profit contribution from electrolytic manganese metal products[28] - The company's attributable profit to owners was HKD 336.1 million in 2022 (2021: HKD 454.6 million)[46] - The company's profit attributable to owners for 2022 was HK$336.1 million, a decrease from HK$454.6 million in 2021[60] - Revenue increased by 24.9% to 16,031,885 thousand HKD in 2022 compared to 12,830,762 thousand HKD in 2021[175] - Gross profit decreased by 41.3% to 1,372,332 thousand HKD in 2022 from 2,338,939 thousand HKD in 2021, with gross margin dropping to 8.6% from 18.2%[175] - Operating profit fell by 59.0% to 514,169 thousand HKD in 2022 from 1,254,104 thousand HKD in 2021[175] - Profit before tax decreased by 27.7% to 394,879 thousand HKD in 2022 from 546,344 thousand HKD in 2021[175] - Net profit attributable to the company's owners dropped by 26.1% to 336,091 thousand HKD in 2022 from 454,583 thousand HKD in 2021[175] Impairment Losses and Adjustments - The company recognized non-cash impairment losses of HKD 119.7 million for property, plant, and equipment, and mining rights in 2022 (2021: HKD 236.4 million)[46] - The company adjusted its investment and expansion plans for the Changgou and Waifu manganese mines, resulting in impairment losses of HKD 70.9 million and HKD 48.8 million, respectively[40][43] - The company recognized a non-cash impairment loss of 119.7 million HKD related to mining rights in 2022[164] Financial Position and Liquidity - Cash and bank balances (including pledged deposits) increased to HK$1,606.3 million in 2022 from HK$1,245.9 million in 2021, while borrowings increased to HK$4,460.4 million from HK$4,113.9 million[64] - Net current liabilities decreased to HK$746.3 million in 2022 from HK$1,584.9 million in 2021, primarily due to obtaining more long-term loans[67] - Fixed-rate and floating-rate borrowings were HK$3,534.7 million and HK$925.7 million respectively in 2022, with fixed-rate loans carrying interest rates between 1.40% and 9.3%[69] - The company's financial expenses remained stable at HK$221.3 million in 2022, compared to HK$236.0 million in 2021[83] - The net debt ratio decreased to 90.1% as of December 31, 2022 (2021: 92.3%)[46] - The group's quick ratio improved to 0.63 in 2022 from 0.60 in 2021, while the net debt ratio decreased to 90.1% from 92.3%[126] - The company's current liabilities exceeded its current assets by HKD 746.3 million as of December 31, 2022, raising liquidity risk concerns[128] - The company successfully renewed or obtained new bank loans amounting to HKD 3,145.5 million from January 1, 2023, to September 30, 2023, addressing liquidity concerns[128] Tax and Dividend Information - The effective tax rate for 2022 was 13.3%, lower than the statutory corporate income tax rate due to the utilization of unrecognized tax loss balances by certain profitable subsidiaries[84] - The company did not recommend any dividend for the year ended December 31, 2022, consistent with 2021[85] - The company did not recommend the payment of any dividends for the year[170] Operational and Strategic Developments - The company is exploring ways to improve its borrowing structure, including short-term and medium-term notes, to optimize interest rates and repayment terms[93] - The group is negotiating a repayment schedule with Customer A and preparing for legal action to expedite the recovery of overdue amounts[108] - The group faces interest rate risk due to fluctuations in the China Loan Prime Rate and LIBOR, which could increase financial expenses if rates rise[108] - The group uses interest rate swap contracts to manage interest rate risk by converting some floating-rate USD borrowings to fixed rates[108] - The group's operations in China and Gabon face foreign exchange risks, with revenues and expenses denominated in RMB, USD, and Central African CFA francs[111] - The group aims to become a leading global manganese producer with a focus on improving operational efficiency and profitability[112] - The electrolytic manganese division faces challenges due to oversupply and rising production costs in the steel industry, leading to reduced demand[114] - The company is optimistic about China's economic recovery following the relaxation of COVID-19 quarantine measures and lockdown policies at the end of 2022[133] - The company focuses on five business segments: ore and traditional manganese-related products, new energy materials, alloy materials, supply chain logistics, and solid waste resource utilization[134] - The company is actively developing new energy battery materials, including electrolytic manganese dioxide and lithium manganate, to expand applications in electric vehicles and other tools[144] - The company established an independent investigation committee on March 31, 2023, to address audit concerns[149] - The company's two subsidiaries were recognized as Guangxi Digital Workshops and Guangxi Green Manufacturing Enterprises[157] - The company was selected as one of the first batch of manufacturing single champion demonstration enterprises in Guangxi in 2022[189] - The company's high-performance lithium-ion battery cathode material key technology and industrialization project won the second prize of the Guangxi Autonomous Region Science and Technology Progress Award in 2022[189] Asset and Liability Changes - Prepayments, other receivables, and other assets classified as current assets decreased by 21.7% to HK$1,380.9 million in 2022[65] - Other payables and accrued expenses decreased by 30.7% to HK$1,521.4 million in 2022, mainly due to reduced advances from trade business customers and decreased VAT payable in China[66] - Inventory increased by 32.2% to HKD 1,849.1 million in 2022, driven by higher inventory and production materials at the Bembélé manganese mine in Gabon[89] - Trade payables and notes increased by 65.3% to HKD 2,148.9 million in 2022, mainly due to increased production and trade-related payables[90] - Total borrowings increased to HKD 4,460.4 million in 2022, with HKD 3,266.9 million due within one year[93] - Total assets increased to 11,450,624 thousand HKD in 2022 from 10,984,343 thousand HKD in 2021[185] - Total liabilities increased to 8,618,338 thousand HKD in 2022 from 8,248,510 thousand HKD in 2021[185] Corporate Governance and Auditing - The company appointed PricewaterhouseCoopers as its new auditor effective October 19, 2022, following the resignation of Ernst & Young[135] - The company is addressing internal control deficiencies identified in an independent review to meet the Hong Kong Stock Exchange's resumption guidance[139] - The group's financial statements for 2021 were restated due to underreporting of reserves and overreporting of non-controlling interests[118][119] - The group may incur additional income tax expenses and related late payment fees due to past tax planning arrangements for certain subsidiaries[121] Other Financial Metrics - EBITDA for 2022 decreased by 20.8% to 1,048.0 million HKD from 1,323.0 million HKD in 2021[164] - Other income and gains increased by 15.7% to 183.2 million HKD in 2022, primarily due to foreign exchange gains[166] - The company holds 33% equity in an associate company, with outstanding bank loans secured by the associate's land, property, plant, and equipment[95] - The company used HK$7.2 million in 2022 to pay the Chinese government for the extension of mining rights for the Changgou Manganese Mine, with annual payments of approximately RMB 6.2 million required from 2023 to 2032[63] - Total funds raised from the IPO amounted to HKD 1,983 million, with HKD 1,894 million (95.5%) utilized as of December 31, 2022[86] - The company's registered office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda[155] - The company's headquarters in Hong Kong is located at Room A02, 35/F, United Centre, 95 Queensway, Admiralty, Hong Kong[155]

Financial Performance - For the six months ended June 30, 2023, the gross profit was HKD 654,960,000, compared to HKD 1,134,497,000 for the same period in 2022, representing a decrease of approximately 42.2%[2] - The total revenue for the six months was HKD 7,732,538,000, down from HKD 9,008,594,000 in the previous year, indicating a decline of about 14.2%[32] - The profit attributable to the owners of the parent company for the period was HKD 134,903,000, a significant decrease from HKD 383,199,000 in the prior year, reflecting a drop of approximately 64.8%[24] - The company reported a net profit of HKD 133,552, a decline of 66.4% compared to HKD 397,656 in the same period last year[45] - For the first half of 2023, the company's EBITDA decreased by 39.0% to HKD 515.8 million, compared to HKD 844.9 million in the same period of 2022[187] Revenue and Sales - Revenue for the first half of 2023 was HKD 7,732,538, a decrease of 14.2% compared to HKD 9,008,594 in the same period of 2022[45] - The revenue from the electrolytic manganese and alloy materials production segment decreased by 28.6% to HKD 1,615.9 million in the first half of 2023, down from HKD 2,263.2 million in the same period of 2022[64] - The lithium battery materials production segment recorded a revenue of HKD 926.7 million in the first half of 2023, a decrease of 12.2% from HKD 1,054.9 million in the same period of 2022[58] - Revenue from the battery materials production segment decreased by 12.2% to HKD 926.7 million for the first half of 2023, compared to HKD 1,054.9 million in the same period of 2022, with a profit drop of 51.8% to HKD 172.9 million[86] Cost and Expenses - The total sales cost decreased by 10.1% to HKD 7,077.6 million in the first half of 2023, compared to HKD 7,874.1 million in the same period of 2022[69] - Sales and distribution expenses increased by 14.7% to HKD 84.5 million in the first half of 2023, primarily due to rising transportation costs[90] - Financial expenses rose by 11.9% to HKD 119.6 million in the first half of 2023, attributed to increased interest on discounted bills and overall borrowing[92] Market Conditions and Challenges - The company anticipates ongoing challenges in the global economy, including high borrowing costs and rising production expenses, which may impact future performance[46] - The company is facing challenges in the electrolytic manganese segment due to oversupply and rising production costs, which may weaken demand for its products[113] Assets and Liabilities - As of June 30, 2023, the group's net current liabilities decreased to HKD 648.1 million from HKD 746.3 million as of December 31, 2022, due to a slight reduction in bank and other borrowings[81] - The company's current liabilities totaled HKD 7,036.5 million as of June 30, 2023, compared to HKD 7,073.7 million at the end of 2022[196] - The total liabilities for loans repayable within five years amounted to HKD 97,272,000, compared to HKD 93,019,000 in the previous year, showing a slight increase of 2.4%[20] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[7] - The company aims to enhance operational efficiency and profitability as part of its long-term growth strategy[111] - The company is exploring various methods to improve its borrowing structure, including short-term or medium-term notes and more long-term bank loans[126] Governance and Compliance - The company has appointed a new auditor, PwC, following the resignation of Ernst & Young, effective October 19, 2022, to maintain good corporate governance standards[142] - An independent investigation committee has been established to address audit concerns raised by the previous auditor regarding the company's manganese ore trading business in Ghana[162] - The company is actively taking steps to rectify issues that led to the suspension of trading and is committed to full compliance with listing rules[147] Research and Development - Research and development costs increased to HKD 48,310, up from HKD 35,108 in the previous year[45] - As the largest manufacturer of electrolytic manganese dioxide in China, the company is optimistic about the battery materials production sector and continues to invest in R&D to improve product quality and expand applications in electric vehicles and other electric tools[141]

Financial Performance - In 2022, the company's revenue was HKD 16,031.9 million, an increase of 24.9% compared to HKD 12,830.8 million in 2021 [77]. - The gross profit for 2022 was HKD 1,372.3 million, with a gross profit margin of 8.6%, down from 18.2% in 2021, representing a decline of 9.6 percentage points [77]. - The profit attributable to the company's owners for 2022 was HKD 336.1 million, down from HKD 454.6 million in 2021 [83]. - The company reported a total comprehensive income of HKD 65,915 for the year, down from HKD 470,752 in 2021, a decline of 86% [100]. - The net profit for the year was HKD 342,314, compared to HKD 356,295 in the previous year, reflecting a decrease of 3.9% [99]. - The group reported a total capital expenditure of HKD 820,077,000 for the year, which includes investments in property, plant, and equipment [122]. - The group’s operating profit before tax was HKD 546,344,000, after accounting for interest income and other expenses [122]. - The group’s operating profit decreased by 59.0% to HKD 514.2 million in 2022, down from HKD 1,254.1 million in 2021 [170]. Impairment and Liabilities - In 2022, the company recognized impairment losses of HKD 70.9 million and HKD 48.8 million for the Changgou Manganese Mine and the Waif Manganese Mine, respectively, due to a significant decline in manganese ore demand [4]. - The company reported a non-cash impairment loss of HKD 119.7 million for property, plant, and equipment, and mining rights in 2022 [77]. - The total current liabilities amounted to HKD 7,073.7 million, a slight decrease from HKD 7,450.9 million in the previous year [86]. - Non-current liabilities increased to HKD 1,544.6 million from HKD 797.6 million in the previous year [86]. - The company must comply with all resumption guidance and rectify issues causing the suspension by September 29, 2024, or risk delisting [40]. Debt and Financing - As of December 31, 2022, the company's net current liabilities decreased to HKD 746.3 million from HKD 1,584.9 million in 2021, attributed to obtaining more long-term loans during the year [16]. - As of December 31, 2022, the company had secured new bank loans amounting to HKD 3,145.5 million, ensuring sufficient operating funds for the next twelve months [22]. - The company’s fixed and floating rate borrowings amounted to HKD 3,534.7 million and HKD 925.7 million, respectively, as of December 31, 2022 [18]. - The financial expenses for 2022 were HKD 221,307, a decrease from HKD 236,012 in 2021, showing a reduction of 6.2% [99]. Corporate Governance and Compliance - The independent investigation report was completed on September 15, 2023, and the board accepted the findings, considering them reasonable and acceptable [30]. - The company is taking appropriate steps to rectify issues that led to the suspension of trading and will comply with listing rules to the satisfaction of the Stock Exchange [31]. - The audit committee has reviewed the accounting policies and discussed matters related to audit, risk management, internal controls, and financial reporting for the year ended December 31, 2022 [44]. - The company is committed to maintaining a good corporate governance structure and adhering to applicable statutory and regulatory requirements [46]. Market and Strategic Initiatives - The company plans to enhance manganese resource control through exploration and acquisitions, focusing on five major business segments for future growth [27]. - The company aims to become a leading one-stop manganese producer globally, focusing on flexible business models and prudent risk management to maintain long-term profitability and asset growth [35]. - The Chinese government's "Green Stimulus Plan" is approximately $195 billion, focusing on accelerating the development of new energy and electric vehicle industries, which presents growth opportunities for the company [37]. - The company plans to focus on market share acquisition, securing raw material supply, and enhancing product R&D [197]. - The company aims to expand production to other battery materials, including lithium manganese and high-purity manganese sulfate [197]. Revenue Segmentation - Revenue from manganese mining increased by 74.2% to HKD 1,257.2 million in 2022, up from HKD 721.7 million in 2021 [172]. - Revenue from trading business rose by 58.8% to HKD 9,411.0 million in 2022, compared to HKD 5,924.6 million in 2021 [172]. - Revenue from the production of electrolytic manganese and alloy materials decreased by 25.1% to HKD 3,377.0 million in 2022, down from HKD 4,510.5 million in 2021 [172]. - Revenue from battery materials production increased by 18.7% to HKD 1,986.7 million in 2022, compared to HKD 1,673.9 million in 2021 [172]. - The total revenue from external customers for the manganese mining segment in China was HKD 134,391,000, while the total revenue from the battery materials production segment was HKD 1,673,925,000 [122].

Financial Performance - In the first half of 2023, the company reported a loss of HKD 70,000 from its joint ventures, compared to a profit of HKD 346,000 in the same period of 2022[5]. - The group reported a profit attributable to owners of HKD 134.9 million for the first half of 2023, down from HKD 383.2 million in the same period of 2022[43]. - Revenue for the first half of 2023 was HKD 7,732.5 million, a decrease of 14.2% compared to HKD 9,008.6 million in the first half of 2022[67]. - Gross profit for the first half of 2023 was HKD 655.0 million, with a gross margin of 8.5%, down from 12.6% in the first half of 2022, representing a decline of 4.1 percentage points[67]. - Operating profit for the first half of 2023 was HKD 184.1 million, a decrease of 70.8% from HKD 630.5 million in the first half of 2022[67]. - The company reported a net profit of HKD 133.6 million for the first half of 2023, compared to HKD 397.7 million in the same period last year[68]. - The effective tax rate for the first half of 2023 was 24.7%, higher than the 21.6% in the same period of 2022[42]. - Other income and gains for the first half of 2023 were HKD 64.0 million, down from HKD 102.4 million in the first half of 2022[67]. - Financial expenses for the first half of 2023 were HKD 119.6 million, compared to HKD 106.9 million in the previous year[67]. - The total tax expense for the period was HKD 43,821, down from HKD 109,507 in the previous year, indicating a reduction of 60%[94]. Assets and Liabilities - As of June 30, 2023, the company's net current liabilities decreased to HKD 648.1 million from HKD 746.3 million as of December 31, 2022[9]. - The group's total borrowings decreased to HKD 4,316.6 million from HKD 4,460.4 million as of December 31, 2022[30]. - The group's trade receivables and notes decreased by HKD 321.2 million to HKD 1,162.8 million as of June 30, 2023, primarily due to an increase in discounted notes[26]. - The current ratio improved to 0.91 as of June 30, 2023, compared to 0.89 as of December 31, 2022[34]. - The net debt ratio decreased to 82.6% as of June 30, 2023, from 90.1% as of December 31, 2022[34]. - The group's total liabilities decreased to HKD 7,036,533 thousand from HKD 7,073,730 thousand, a reduction of approximately 0.53%[72]. - The company reported a slight increase in net assets to HKD 2,833,612 thousand from HKD 2,832,286 thousand, reflecting stable equity[72]. - The non-controlling interests decreased slightly to HKD 3,159,479 thousand from HKD 3,168,078 thousand, indicating minor changes in subsidiary performance[72]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was HKD 7,732,538 thousand, with significant contributions from manganese mining and production[88]. - Revenue from mainland China accounted for HKD 7,402,396 thousand, representing a substantial portion of total sales[88]. - Manganese mining revenue was HKD 581,908, down from HKD 639,561, representing a decline of 9%[114]. - Electrolytic manganese and alloy materials production revenue was HKD 1,615,881, a decrease of 29% from HKD 2,263,223[114]. - Battery materials production revenue was HKD 926,713, down from HKD 1,054,924, reflecting a decline of 12%[114]. - Other businesses generated revenue of HKD 4,608,036, a decrease of 9% from HKD 5,050,886[114]. Operational Insights - The company is optimistic about the battery materials production sector and continues to enhance its leading position through ongoing R&D efforts[4]. - The company anticipates challenges in the second half of 2023 for its electrolytic manganese segment due to oversupply and rising production costs faced by steel manufacturers[3]. - The company plans to enhance manganese resource exploration and strategic control through acquisitions[22]. - The company aims to improve operational efficiency and profitability as part of its long-term growth strategy[22]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic investments in non-wholly owned subsidiaries[74]. - The company remains optimistic about the battery materials segment and plans to focus on market share expansion and product development[155]. Governance and Compliance - The company has appointed an independent internal control consultant to review its internal control procedures, which has identified several deficiencies that have since been rectified[180]. - The board of directors and audit committee have discussed the rotation of auditors, resulting in the resignation of Ernst & Young and the appointment of PwC as the new auditor effective October 19, 2022[190]. - The company is taking appropriate steps to rectify issues that led to the suspension of trading and is committed to complying with listing rules to regain trading approval[195]. - The company has adhered to the corporate governance code principles and applicable provisions, except for a deviation from code provision A.2.1[181]. - All directors have confirmed compliance with the securities trading code during the six months ended June 30, 2023[199].

Financial Performance - In 2022, the revenue was HKD 16,031.9 million, an increase of 24.9% compared to HKD 12,830.8 million in 2021[4] - The gross profit for 2022 was HKD 1,372.3 million, down from HKD 2,338.9 million in 2021, resulting in a gross margin of 8.6%, a decrease of 9.6 percentage points from 18.2% in 2021[4] - The net profit attributable to the owners of the company for 2022 was HKD 336.1 million, compared to HKD 356.3 million in 2021[4] - The company reported a total capital expenditure of HKD 820.1 million for the year[10] - The financial expenses for 2022 were HKD 221.3 million, a decrease from HKD 236.0 million in 2021[4] - The company’s operating profit before tax for 2022 was HKD 394.9 million, compared to HKD 546.3 million in 2021[4] - The total tax expense for the year was HKD 52,565,000, a decrease from HKD 190,049,000 in 2021, primarily due to the utilization of prior year tax losses[29] - The total profit attributable to the company's owners for 2022 was HKD 336.1 million, down from HKD 454.6 million in 2021[58] - The company's net profit attributable to shareholders for 2022 was HKD 336,091 thousand, a decrease of 26.1% from HKD 454,583 thousand in 2021[50] - The EBITDA for 2022 decreased by 20.8% to HKD 1,048.0 million, compared to HKD 1,323.0 million in 2021[58] Revenue Breakdown - Revenue from mainland China in 2022 was HKD 14,989.7 million, up from HKD 11,939.8 million in 2021[12] - The sales breakdown by region shows that Mainland China contributed HKD 14,989,718,000, accounting for 93.5% of total sales, while sales in Asia (excluding Mainland China) were HKD 740,922,000[18] - The battery materials production segment's revenue was HKD 1,986.7 million in 2022, an 18.7% increase from HKD 1,673.9 million in 2021[61] - The manganese mining segment's revenue increased by 74.2% to HKD 1,257.2 million in 2022, driven by expanded mining operations at the Bembélé manganese mine[64] - The electrolytic manganese and alloy materials production segment's revenue decreased to HKD 3,377.0 million in 2022 from HKD 4,510.5 million in 2021, reflecting a decline of 25.1%[61] - The revenue from silicon manganese alloy decreased by 35.8% to HKD 905.3 million in 2022, with sales volume down by 36.6% to 106,612 tons[70] Cost and Expenses - The total cost of goods sold for the year was HKD 14,434,290,000, which includes depreciation and employee benefits, highlighting the operational costs associated with revenue generation[25] - Total sales costs rose by 39.7% to HKD 14,659.6 million in 2022, compared to HKD 10,491.8 million in 2021[80] - The average selling price of electrolytic manganese products fell by 8.1% to HKD 20,322 per ton in 2022, compared to HKD 22,121 per ton in 2021[53] - The average selling price of electrolytic manganese dioxide increased by 55.0% to HKD 16,644 per ton, with a gross profit margin rising by 17.8 percentage points to 47.0%[55] Impairment and Liabilities - The company recognized a non-cash impairment loss of HKD 119.7 million on property, plant, and equipment, down from HKD 236.4 million in 2021[4] - The company's total liabilities increased to HKD 2,148,852 thousand in 2022 from HKD 1,300,221 thousand in 2021[47] - Impairment losses on mining rights amounted to HKD 70.9 million and HKD 48.8 million for two manganese mines due to decreased demand and production cuts[86] - The company's financial expenses remained stable at HKD 221.3 million in 2022, compared to HKD 236.0 million in 2021[93] Market and Strategic Initiatives - The company plans to expand its market presence in Europe and North America, where sales were HKD 28,635,000 and HKD 272,610,000 respectively, indicating potential growth opportunities[18] - The group aims to enhance manganese resources and reserves through exploration and strategic acquisitions[153] - The group is optimistic about the gradual recovery of the global economy as more countries ease COVID-19 restrictions[154] - The group continues to strengthen its leading position in battery materials production, focusing on R&D to improve the quality of new energy battery materials[157] Governance and Compliance - The company has appointed a new auditor, RSM Hong Kong, effective from August 18, 2023, following the resignation of PwC on July 31, 2023[159] - An independent investigation committee was established on March 31, 2023, to address the audit concerns raised by the previous auditor[161] - The company must comply with all resumption guidance from the Stock Exchange to avoid delisting, with a deadline of September 29, 2024[161] - The company has committed to improving its internal controls and has identified and rectified several deficiencies[176] Shareholder Information - The company did not recommend any dividend for the year ended December 31, 2022, consistent with 2021[44] - Basic earnings per share for the company’s owners were HKD 0.0980 in 2022, compared to HKD 0.1326 in 2021[109] - The company expresses gratitude to shareholders, business partners, distributors, and employees for their support and contributions[196]

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 9,008,594, an increase of 113% compared to HKD 4,228,335 for the same period in 2021[11] - Gross profit for the same period was HKD 7,874,097, representing a gross margin of approximately 87%[11] - Net profit for the period was HKD 424,979, a significant increase from HKD 24,116 in the previous year, reflecting a year-over-year growth of 1,668%[11] - Basic and diluted earnings per share for the period were HKD 0.1322, compared to HKD 0.0064 in the prior year[11] - Total comprehensive income for the period amounted to HKD 241,847, compared to HKD 62,782 in the same period last year[11] - The company reported a significant increase in other income and gains, totaling HKD 102,353, up from HKD 74,357 in the previous year[11] - The company reported a total comprehensive income of HKD 62.78 million for the period, compared to HKD 22.06 million in the previous year, reflecting improved financial performance[24] - The group reported a total of HKD 4,605,000 in salaries, director's fees, and allowances for key management personnel in the first half of 2022, a decrease from HKD 7,253,000 in the same period of 2021[140] Assets and Liabilities - Non-current assets totaled HKD 5,023,622 thousand as of June 30, 2022, a decrease of 1.85% from HKD 5,118,358 thousand as of December 31, 2021[14] - Current assets increased to HKD 6,047,493 thousand, up 3.09% from HKD 5,865,985 thousand year-over-year[14] - Total liabilities decreased to HKD 7,753,906 thousand, down 10.67% from HKD 8,688,767 thousand as of December 31, 2021[14] - The net asset value rose to HKD 3,317,209 thousand, reflecting an increase of 8.93% from HKD 3,044,576 thousand[15] - Current liabilities decreased to HKD 6,349,713 thousand, down 11.09% from HKD 7,142,173 thousand[14] - The company's total liabilities decreased to HKD 1,571,256,000 as of June 30, 2022, from HKD 1,464,728,000 as of December 31, 2021, reflecting a decrease of approximately 7.3%[81] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 389.87 million, a decrease of 16% compared to HKD 464.08 million for the same period in 2021[24] - The net cash flow used in investing activities was HKD (436.34) million, compared to HKD (362.19) million in the previous year, indicating an increase in investment outflows[24] - The net cash flow generated from financing activities was HKD 377.61 million, a significant improvement from HKD (435.49) million in the prior year[24] - The total cash and cash equivalents at the end of the period increased to HKD 1,324.26 million, up from HKD 803.54 million at the end of the previous year[24] - Cash and bank balances amounted to HKD 1,841,231,000 as of June 30, 2022, compared to HKD 1,245,909,000 as of December 31, 2021[100] Segment Performance - The group operates four reportable segments: Manganese Mining, Electrolytic Manganese and Alloy Production, Battery Materials Production, and Other Businesses[38] - The Manganese Mining segment is responsible for the extraction and production of manganese products, including manganese ore and manganese powder[38] - The Electrolytic Manganese and Alloy Production segment includes the extraction and processing of ores for the production of electrolytic manganese and ferromanganese alloys[38] - The Battery Materials Production segment focuses on producing battery materials such as electrolytic manganese dioxide and lithium nickel cobalt manganese oxide[38] - The Other Businesses segment includes trading activities and investments in non-manganese metal extraction and production[38] - The total segment performance showed a profit of HKD 724,208, compared to HKD 247,719 in the same period last year, marking an increase of approximately 192%[46] - The battery materials production segment achieved revenue exceeding HKD 1 billion for the first time, contributing significantly to overall revenue growth[164] Market and Operational Insights - The company aims to expand its market presence and enhance product offerings through ongoing research and development initiatives[11] - The company continues to focus on manganese mining and processing operations in mainland China and Gabon, indicating ongoing commitment to its core business[26] - The company plans to continue expanding its market presence and investing in new technologies to enhance production capabilities and meet growing demand[46] - The company anticipates a rebound in demand for electrolytic manganese products in the second half of 2022 due to government stimulus measures and the easing of lockdowns in China[159] - The company plans to focus on market share acquisition, securing raw material supply, enhancing product R&D, and expanding production to other battery materials[160] Expenses and Impairments - Administrative expenses rose to HKD 402,166, compared to HKD 251,436 in the prior year, indicating a 60% increase[11] - The company recognized an impairment loss of HKD 126,297 on property, plant, and equipment, compared to HKD 45,557 in the previous year[11] - The group confirmed a non-cash impairment loss of HKD 126.3 million related to mining rights, impacting overall profitability[161] - The company's significant increase in employee benefits expenses totaled HKD 402,362,000 for the period, compared to HKD 358,044,000 in the previous year[56] Revenue Growth Factors - The average selling price of electrolytic manganese rose by 53.4% to HKD 24,902 per ton in the first half of 2022, compared to HKD 16,233 per ton in the first half of 2021[159] - The average selling price of electrolytic manganese dioxide increased by 65.7% to HKD 16,405 per ton in the first half of 2022, compared to HKD 9,901 per ton in the first half of 2021[160] - The average selling price of lithium manganese oxide surged by 160.1% to HKD 88,925 per ton, reflecting the rise in lithium carbonate prices[178]

Financial Performance - The company reported revenue of HKD 12,830,762, a significant increase of 194% compared to HKD 4,367,563 in the previous year[13] - The pre-tax profit for the year was HKD 584,936, recovering from a loss of HKD 503,810 in the previous year[13] - Net profit attributable to the parent company was HKD 466,185, compared to a loss of HKD 437,929 in the previous year[13] - Total assets increased to HKD 10,984,343, up from HKD 9,058,703 in the previous year, reflecting a growth of 21%[13] - Current assets rose to HKD 5,865,985, a 47% increase from HKD 3,972,103 in the previous year[13] - Total liabilities amounted to HKD 7,939,767, an increase from HKD 6,507,630 in the previous year[13] - The company's net assets reached HKD 3,044,576, up from HKD 2,551,073 in the previous year, indicating a growth of 19%[13] - Non-current assets slightly increased to HKD 5,118,358 from HKD 5,086,600 in the previous year[13] - The company reported a total revenue of HKD 2,618,617,000 as of December 31, 2021, with no significant changes in the nature of its main business during the year[31] - The gross profit for 2021 was HKD 2,338.9 million, up 305.7% from HKD 576.5 million in 2020, with a gross margin of 18.2%, an increase of 5.0 percentage points from 13.2% in 2020[82] - The operating profit for 2021 was HKD 1,292.7 million, compared to HKD 112.8 million in 2020, reflecting a significant increase[80] - The net profit attributable to equity holders of the parent for 2021 was HKD 466.2 million, a turnaround from a loss of HKD 437.9 million in 2020[82] - The net debt ratio decreased to 92.3% as of December 31, 2021, down from 134.8% in 2020[82] - The cash generated from operations for 2021 was HKD 1,595.1 million, an increase of 167.3% from HKD 596.8 million in 2020[82] Market and Growth Strategy - The company plans to expand its market presence and invest in new technologies to drive future growth[15] - The management is optimistic about the upcoming fiscal year, expecting continued revenue growth and improved profitability[15] - The company plans to continue enhancing its production technology and expanding its product offerings in battery materials and new energy materials to strengthen market competitiveness[17] - The group maintained a cautious optimism regarding the battery materials segment, focusing on market share and product development[87] - The group is optimistic about the recovery of the Chinese economy and plans to improve internal efficiency and management skills to reduce costs and enhance competitiveness[172] - The group continues to strengthen its leading position in the production of new energy battery materials, focusing on quality improvement and expanding applications in electric vehicles[173] Environmental and Safety Initiatives - The company actively implemented production cuts and carbon reduction measures in response to national energy-saving policies, enhancing its commitment to green development[17] - The company achieved zero casualties in production safety incidents during the year, thanks to its robust safety and environmental management systems[21] - The company successfully launched a project for the resource utilization of electrolytic manganese anode mud, marking a breakthrough in clean and sustainable production processes[21] - The Daxin manganese mine was honored as a "National Green Mine" by the Ministry of Natural Resources, reflecting the company's commitment to sustainable mining practices[23] - The company organized tree planting activities, planting over 2,000 fruit trees during the Arbor Day period, contributing to environmental improvement[25] - The group is committed to achieving carbon neutrality goals in line with government initiatives, focusing on green development and sustainable practices[172] Product and Sales Performance - In 2021, the average selling price of electrolytic manganese metal increased by 106.3% to HKD 22,121 per ton, compared to HKD 10,725 per ton in 2020[84] - The gross profit margin for electrolytic manganese metal products rose by 29.7 percentage points to 44.2% in 2021, up from 14.5% in 2020[84] - The sales volume of electrolytic manganese dioxide increased by 38.5% to 119,539 tons in 2021, compared to 86,294 tons in 2020[88] - The average selling price of electrolytic manganese dioxide rose by 24.7% to HKD 10,741 per ton in 2021, up from HKD 8,616 per ton in 2020[88] - The electrolytic manganese and alloy materials production segment's revenue rose by 46.0% to HKD 4,510.5 million in 2021, compared to HKD 3,089.2 million in 2020, mainly due to a significant increase in average selling prices[105] - Battery materials production segment revenue surged by 82.3% to HKD 1,673.9 million in 2021, up from HKD 918.4 million in 2020, with gross profit increasing by 100.6% to HKD 444.7 million[110] Related Party Transactions - The company has entered into related party transactions with Guangxi Daming and its subsidiaries, confirming that these transactions are conducted on normal commercial terms[71] - The company has established agreements for the purchase of high-grade manganese ore from Guangxi Daming for the three years ending December 31, 2023[67] - In 2021, the company purchased finished products from Guangxi Daming amounting to HKD 56,831,000[69] - The company also procured raw materials from Guangxi Daming's subsidiaries for HKD 870,000 in 2021[69] - The company supplied electricity and auxiliary materials to Guangxi Xishan for HKD 11,539,000 in 2021[69] Shareholder and Management Information - The company does not recommend the distribution of any dividends for the year[31] - The company has no existing management contracts related to the management and administration of its business[34] - As of December 31, 2021, major shareholders include Sun Mingwen with 994,260,000 shares, representing 29.00% of the issued share capital[59] - Guangxi Daming Group holds 776,250,000 shares, accounting for 22.64% of the issued share capital[59] - CITIC Group has a stake of 203,090,000 shares, which is 5.92% of the issued share capital[59] Debt and Financing - The company’s borrowings, including interest-bearing bank loans and other borrowings, are detailed in the financial statements[34] - The company has HKD 3,624.0 million in borrowings due within one year, up from HKD 2,676.0 million in 2020, reflecting a significant increase of approximately 35.4%[152] - Total borrowings decreased to HKD 4,113.9 million in 2021 from HKD 4,569.4 million in 2020, representing a reduction of approximately 9.9%[152] - The company has secured new bank loans totaling HKD 1,117.9 million since January 1, 2022, ensuring sufficient working capital for the next twelve months[160] - The group faces interest rate risk due to floating rate debt, which may increase financial costs if market rates rise; to manage this risk, interest rate swap contracts are utilized to lock in certain floating rates[166] Mining Operations and Resources - The total mining output for the Bembélé manganese mine in 2021 was 1,810 thousand tons, an increase from 1,546 thousand tons in 2020, reflecting a growth of approximately 17%[195] - The total mining output for the Daxin manganese mine in 2021 was 1,764 thousand tons, a decrease of about 4.5% from 1,847 thousand tons in 2020[192] - The manganese ore production at the Tiandeng manganese mine increased to 625 thousand tons in 2021, up from 498 thousand tons in 2020, representing a growth of approximately 25.5%[193] - The company has completed geological exploration at the Bembélé manganese mine, identifying approximately 1,021.80 thousand tons of economic manganese ore resources with an average grade of 26.93%[1] - The company has not signed any contracts or made commitments for exploration work at the Daxin manganese mine during the year[1] - The company has engaged contractors for geological surveys at the Bembélé manganese mine, covering an area of 2,000 square kilometers for further exploration[1]

(於百慕達註冊成立之有限公司) 股份代號: 1091 2021 中期報告 2021 目錄 頁次 2 公司資料 財務業績 4 5 7 9 10 中期簡明綜合損益及其他全面收益表 中期簡明綜合財務狀況表 中期簡明綜合權益變動報表 中期簡明綜合現金流量表 中期簡明綜合財務報表附註 其他資料 37 51 54 68 76 76 76 76 77 78 78 78 78 79 | --- | |--------------------------------------------------------------------------------------| | | | 管理層討論及分析 人力資源報告 | | 環境、社會及管治報告 | | 我們的錳礦資源摘要及我們的錳礦石儲量摘要 | | 企業管治常規守則 董事進行證券交易的標準守則 董事及最高行政人員在股份及相關股份的權益 | | 購股權計劃 主要股東及其他人士在股份及相關股份的權益 購買、贖回或出售本公司的上市證券 | | 董事資料變更 | | 審閱帳目 | | 前瞻聲明 | | 詞滙表 | 2 南方錳業投資有限公司 公司資料 | --- | --- | | ...